diff --git a/backend/src/database.js b/backend/src/database.js
index 69e86340..99f1c7c8 100644
--- a/backend/src/database.js
+++ b/backend/src/database.js
@@ -65,6 +65,21 @@ function initializeTables() {
     }
   });
 
+  // Favorite sections table
+  db.run(`
+    CREATE TABLE IF NOT EXISTS favorite_sections (
+      id INTEGER PRIMARY KEY AUTOINCREMENT,
+      user_id INTEGER NOT NULL,
+      name TEXT NOT NULL,
+      color TEXT DEFAULT '#6B7280',
+      sort_order INTEGER DEFAULT 0,
+      is_default BOOLEAN DEFAULT 0,
+      created_at DATETIME DEFAULT CURRENT_TIMESTAMP,
+      FOREIGN KEY (user_id) REFERENCES users (id) ON DELETE CASCADE,
+      UNIQUE(user_id, name)
+    )
+  `);
+
   // Favorites table (with IF NOT EXISTS for safety)
   db.run(`
     CREATE TABLE IF NOT EXISTS favorites (
@@ -76,12 +91,28 @@ function initializeTables() {
       verse_end INTEGER,
       version TEXT DEFAULT 'esv',
       note TEXT,
+      section_id INTEGER,
       created_at DATETIME DEFAULT CURRENT_TIMESTAMP,
       FOREIGN KEY (user_id) REFERENCES users (id) ON DELETE CASCADE,
+      FOREIGN KEY (section_id) REFERENCES favorite_sections (id) ON DELETE SET NULL,
       UNIQUE(user_id, book, chapter, verse_start, verse_end, version)
     )
   `);
 
+  // Migration: Add section_id column to existing favorites table if it doesn't exist
+  db.all("PRAGMA table_info(favorites)", [], (err, columns) => {
+    if (!err && columns.length > 0) {
+      const hasSectionIdColumn = columns.some(col => col.name === 'section_id');
+      if (!hasSectionIdColumn) {
+        db.run("ALTER TABLE favorites ADD COLUMN section_id INTEGER REFERENCES favorite_sections(id) ON DELETE SET NULL", (err) => {
+          if (!err) {
+            console.log('Added section_id column to favorites table');
+          }
+        });
+      }
+    }
+  });
+
   console.log('Database tables initialized');
 }
 
@@ -171,12 +202,126 @@ const preferencesOps = {
   }
 };
 
+// Sections operations
+const sectionsOps = {
+  // Get all sections for user
+  getSections: (userId, callback) => {
+    db.all(
+      'SELECT * FROM favorite_sections WHERE user_id = ? ORDER BY sort_order ASC, created_at ASC',
+      [userId],
+      callback
+    );
+  },
+
+  // Create a new section
+  createSection: (userId, section, callback) => {
+    const { name, color } = section;
+
+    // Get the next sort_order
+    db.get(
+      'SELECT COALESCE(MAX(sort_order), -1) + 1 as next_order FROM favorite_sections WHERE user_id = ?',
+      [userId],
+      (err, row) => {
+        if (err) return callback(err);
+
+        db.run(
+          `INSERT INTO favorite_sections (user_id, name, color, sort_order)
+           VALUES (?, ?, ?, ?)`,
+          [userId, name, color || '#6B7280', row.next_order],
+          function(err) {
+            if (err) return callback(err);
+            callback(null, { id: this.lastID, name, color: color || '#6B7280', sort_order: row.next_order });
+          }
+        );
+      }
+    );
+  },
+
+  // Update a section
+  updateSection: (userId, sectionId, updates, callback) => {
+    const { name, color, is_default } = updates;
+
+    // If setting as default, first unset any existing default
+    if (is_default) {
+      db.run(
+        'UPDATE favorite_sections SET is_default = 0 WHERE user_id = ?',
+        [userId],
+        (err) => {
+          if (err) return callback(err);
+
+          db.run(
+            `UPDATE favorite_sections
+             SET name = COALESCE(?, name),
+                 color = COALESCE(?, color),
+                 is_default = ?
+             WHERE id = ? AND user_id = ?`,
+            [name, color, is_default ? 1 : 0, sectionId, userId],
+            callback
+          );
+        }
+      );
+    } else {
+      db.run(
+        `UPDATE favorite_sections
+         SET name = COALESCE(?, name),
+             color = COALESCE(?, color),
+             is_default = COALESCE(?, is_default)
+         WHERE id = ? AND user_id = ?`,
+        [name, color, is_default !== undefined ? (is_default ? 1 : 0) : null, sectionId, userId],
+        callback
+      );
+    }
+  },
+
+  // Delete a section (favorites will have section_id set to NULL via ON DELETE SET NULL)
+  deleteSection: (userId, sectionId, callback) => {
+    db.run(
+      'DELETE FROM favorite_sections WHERE id = ? AND user_id = ?',
+      [sectionId, userId],
+      callback
+    );
+  },
+
+  // Reorder sections
+  reorderSections: (userId, sectionIds, callback) => {
+    const updates = sectionIds.map((id, index) => {
+      return new Promise((resolve, reject) => {
+        db.run(
+          'UPDATE favorite_sections SET sort_order = ? WHERE id = ? AND user_id = ?',
+          [index, id, userId],
+          (err) => {
+            if (err) reject(err);
+            else resolve();
+          }
+        );
+      });
+    });
+
+    Promise.all(updates)
+      .then(() => callback(null))
+      .catch(callback);
+  },
+
+  // Get default section for user
+  getDefaultSection: (userId, callback) => {
+    db.get(
+      'SELECT * FROM favorite_sections WHERE user_id = ? AND is_default = 1',
+      [userId],
+      callback
+    );
+  }
+};
+
 // Favorites operations
 const favoritesOps = {
-  // Get user favorites
+  // Get user favorites with section info
   getFavorites: (userId, callback) => {
     db.all(
-      'SELECT * FROM favorites WHERE user_id = ? ORDER BY created_at DESC',
+      `SELECT f.*, s.name as section_name, s.color as section_color
+       FROM favorites f
+       LEFT JOIN favorite_sections s ON f.section_id = s.id
+       WHERE f.user_id = ?
+       ORDER BY f.created_at DESC`,
       [userId],
       callback
     );
@@ -184,12 +329,12 @@ const favoritesOps = {
 
   // Add favorite
   addFavorite: (userId, favorite, callback) => {
-    const { book, chapter, verse_start, verse_end, version, note } = favorite;
+    const { book, chapter, verse_start, verse_end, version, note, section_id } = favorite;
 
     db.run(
-      `INSERT INTO favorites (user_id, book, chapter, verse_start, verse_end, version, note)
-       VALUES (?, ?, ?, ?, ?, ?, ?)`,
-      [userId, book, chapter, verse_start, verse_end, version || 'esv', note],
+      `INSERT INTO favorites (user_id, book, chapter, verse_start, verse_end, version, note, section_id)
+       VALUES (?, ?, ?, ?, ?, ?, ?, ?)`,
+      [userId, book, chapter, verse_start, verse_end, version || 'esv', note, section_id || null],
       callback
     );
   },
@@ -203,6 +348,15 @@ const favoritesOps = {
     );
   },
 
+  // Update favorite's section
+  updateFavoriteSection: (userId, favoriteId, sectionId, callback) => {
+    db.run(
+      'UPDATE favorites SET section_id = ? WHERE id = ? AND user_id = ?',
+      [sectionId, favoriteId, userId],
+      callback
+    );
+  },
+
   // Check if verse is favorited
   isFavorited: (userId, book, chapter, verse_start, verse_end, version, callback) => {
     db.get(
@@ -220,5 +374,6 @@ module.exports = {
   db,
   userOps,
   preferencesOps,
-  favoritesOps
+  favoritesOps,
+  sectionsOps
 };
diff --git a/backend/src/index.js b/backend/src/index.js
index 58a5cc25..81b7ba5a 100644
--- a/backend/src/index.js
+++ b/backend/src/index.js
@@ -4,7 +4,7 @@ const helmet = require('helmet');
 const path = require('path');
 const fs = require('fs').promises;
 const { configureAuth, requireAuth, optionalAuth } = require('./auth');
-const { preferencesOps, favoritesOps } = require('./database');
+const { preferencesOps, favoritesOps, sectionsOps } = require('./database');
 const SearchDatabase = require('./searchDatabase');
 
 const app = express();
@@ -384,7 +384,7 @@ app.get('/api/favorites', requireAuth, (req, res) => {
 });
 
 app.post('/api/favorites', requireAuth, (req, res) => {
-  const { book, chapter, verse_start, verse_end, note, version } = req.body;
+  const { book, chapter, verse_start, verse_end, note, version, section_id } = req.body;
 
   // Book is required, but chapter is optional (for book-level favorites)
   if (!book) {
@@ -397,7 +397,8 @@ app.post('/api/favorites', requireAuth, (req, res) => {
     verse_start: verse_start || null,
     verse_end: verse_end || null,
     version: version || 'esv',
-    note: note || null
+    note: note || null,
+    section_id: section_id || null
   };
 
   favoritesOps.addFavorite(req.user.id, favorite, function(err) {
@@ -407,7 +408,7 @@ app.post('/api/favorites', requireAuth, (req, res) => {
       }
       return res.status(500).json({ error: 'Failed to add favorite' });
     }
-    res.json({ 
+    res.json({
       message: 'Favorite added successfully',
       id: this.lastID
     });
@@ -427,16 +428,16 @@ app.delete('/api/favorites/:id', requireAuth, (req, res) => {
 
 app.get('/api/favorites/check', requireAuth, (req, res) => {
   const { book, chapter, verse_start, verse_end } = req.query;
-  
+
   if (!book) {
     return res.status(400).json({ error: 'Book is required' });
   }
 
   favoritesOps.isFavorited(
-    req.user.id, 
-    book, 
-    chapter || null, 
-    verse_start || null, 
+    req.user.id,
+    book,
+    chapter || null,
+    verse_start || null,
     verse_end || null,
     (err, isFavorited) => {
       if (err) {
@@ -447,6 +448,91 @@ app.get('/api/favorites/check', requireAuth, (req, res) => {
   );
 });
 
+// Update favorite's section
+app.put('/api/favorites/:id/section', requireAuth, (req, res) => {
+  const favoriteId = req.params.id;
+  const { section_id } = req.body;
+
+  favoritesOps.updateFavoriteSection(req.user.id, favoriteId, section_id, (err) => {
+    if (err) {
+      return res.status(500).json({ error: 'Failed to update favorite section' });
+    }
+    res.json({ message: 'Favorite section updated successfully' });
+  });
+});
+
+// Sections routes
+app.get('/api/sections', requireAuth, (req, res) => {
+  sectionsOps.getSections(req.user.id, (err, sections) => {
+    if (err) {
+      return res.status(500).json({ error: 'Failed to get sections' });
+    }
+    res.json({ sections });
+  });
+});
+
+app.post('/api/sections', requireAuth, (req, res) => {
+  const { name, color } = req.body;
+
+  if (!name || !name.trim()) {
+    return res.status(400).json({ error: 'Section name is required' });
+  }
+
+  sectionsOps.createSection(req.user.id, { name: name.trim(), color }, (err, section) => {
+    if (err) {
+      if (err.code === 'SQLITE_CONSTRAINT') {
+        return res.status(409).json({ error: 'A section with this name already exists' });
+      }
+      return res.status(500).json({ error: 'Failed to create section' });
+    }
+    res.json({
+      message: 'Section created successfully',
+      section
+    });
+  });
+});
+
+app.put('/api/sections/:id', requireAuth, (req, res) => {
+  const sectionId = req.params.id;
+  const { name, color, is_default } = req.body;
+
+  sectionsOps.updateSection(req.user.id, sectionId, { name, color, is_default }, (err) => {
+    if (err) {
+      if (err.code === 'SQLITE_CONSTRAINT') {
+        return res.status(409).json({ error: 'A section with this name already exists' });
+      }
+      return res.status(500).json({ error: 'Failed to update section' });
+    }
+    res.json({ message: 'Section updated successfully' });
+  });
+});
+
+app.delete('/api/sections/:id', requireAuth, (req, res) => {
+  const sectionId = req.params.id;
+
+  sectionsOps.deleteSection(req.user.id, sectionId, (err) => {
+    if (err) {
+      return res.status(500).json({ error: 'Failed to delete section' });
+    }
+    res.json({ message: 'Section deleted successfully' });
+  });
+});
+
+app.put('/api/sections/reorder', requireAuth, (req, res) => {
+  const { sectionIds } = req.body;
+
+  if (!Array.isArray(sectionIds)) {
+    return res.status(400).json({ error: 'sectionIds must be an array' });
+  }
+
+  sectionsOps.reorderSections(req.user.id, sectionIds, (err) => {
+    if (err) {
+      return res.status(500).json({ error: 'Failed to reorder sections' });
+    }
+    res.json({ message: 'Sections reordered successfully' });
+  });
+});
+
 // Catch-all handler: send back React's index.html for client-side routing
 app.get('*', (req, res) => {
   res.sendFile(path.join(__dirname, '../../frontend/build/index.html'));
diff --git a/frontend/src/App.tsx b/frontend/src/App.tsx
index 8f2d4273..4f46716b 100644
--- a/frontend/src/App.tsx
+++ b/frontend/src/App.tsx
@@ -8,6 +8,7 @@ import FavoritesMenu from './components/FavoritesMenu';
 import SearchComponent from './components/SearchComponent';
 import VersionSelector from './components/VersionSelector';
 import { getBooks } from './services/api';
+import { Section } from './types/favorites';
 
 interface BookData {
   books: string[];
@@ -29,6 +30,7 @@ function App() {
   const [versionSelected, setVersionSelected] = useState(false); // Track if version has been chosen
   const [availableVersions, setAvailableVersions] = useState<any[]>([]);
   const [favorites, setFavorites] = useState<any[]>([]); // Centralized favorites state
+  const [sections, setSections] = useState<Section[]>([]); // Sections for organizing favorites
   const location = useLocation();
   const navigate = useNavigate();
 
@@ -72,8 +74,10 @@ function App() {
     if (user) {
       loadUserPreferences();
       loadFavorites(); // Load favorites once when user logs in
+      loadSections(); // Load sections when user logs in
     } else {
       setFavorites([]); // Clear favorites when user logs out
+      setSections([]); // Clear sections when user logs out
     }
   }, [user]);
 
@@ -278,6 +282,34 @@ function App() {
     }
   };
 
+  // Load sections for the user
+  const loadSections = async () => {
+    if (!user) {
+      setSections([]);
+      return;
+    }
+
+    try {
+      const response = await fetch('/api/sections', {
+        credentials: 'include'
+      });
+
+      if (response.ok) {
+        const data = await response.json();
+        setSections(data.sections);
+        console.log('Loaded sections:', data.sections.length);
+      }
+    } catch (error) {
+      console.error('Failed to load sections:', error);
+      setSections([]);
+    }
+  };
+
+  // Handler for section changes (create, update, delete)
+  const handleSectionChange = async () => {
+    await loadSections();
+  };
+
   // Helper functions to filter favorites by type
   const getBookFavorites = (version: string) => {
     return new Set(
@@ -361,6 +393,8 @@ function App() {
         onBack={handleBack}
         onSearchClick={() => setShowSearch(true)}
         favorites={versionId ? getBookFavorites(versionId) : new Set()}
+        sections={sections}
+        onSectionChange={handleSectionChange}
       />
     );
   };
@@ -393,6 +427,8 @@ function App() {
         version={versionId}
         onSearchClick={() => setShowSearch(true)}
         favorites={versionId ? getChapterFavorites(actualBookName, versionId) : new Set()}
+        sections={sections}
+        onSectionChange={handleSectionChange}
       />
     );
   };
@@ -421,6 +457,8 @@ function App() {
         version={selectedVersion}
         onSearchClick={() => setShowSearch(true)}
         favorites={getVerseFavorites(actualBookName, chapterNumber, selectedVersion)}
+        sections={sections}
+        onSectionChange={handleSectionChange}
       />
     );
   };
@@ -547,6 +585,8 @@ function App() {
             getBookUrlName={getBookUrlName}
             setSelectedVersion={setSelectedVersion}
             onFavoriteChange={handleFavoriteChange}
+            sections={sections}
+            onSectionChange={handleSectionChange}
           />
           </div>
         </div>
diff --git a/frontend/src/components/BibleReader.tsx b/frontend/src/components/BibleReader.tsx
index 6b9f5c80..eef99c26 100644
--- a/frontend/src/components/BibleReader.tsx
+++ b/frontend/src/components/BibleReader.tsx
@@ -1,6 +1,8 @@
 import React, { useState, useEffect, memo } from 'react';
 import { ArrowLeft, BookOpen, ChevronLeft, ChevronRight, Star, Search } from 'lucide-react';
 import { getChapter, getBook } from '../services/api';
+import { Section } from '../types/favorites';
+import SectionPicker from './SectionPicker';
 
 interface BibleReaderProps {
   book: string;
@@ -12,6 +14,8 @@ interface BibleReaderProps {
   version?: string;
   onSearchClick?: () => void;
   favorites?: Set<string>; // Favorites passed from parent (centralized state)
+  sections?: Section[];
+  onSectionChange?: () => void;
 }
 
 const BibleReader: React.FC<BibleReaderProps> = memo(({
@@ -23,7 +27,9 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
   onFavoriteChange,
   version = 'esv',
   onSearchClick,
-  favorites = new Set() // Default to empty set if not provided
+  favorites = new Set(), // Default to empty set if not provided
+  sections = [],
+  onSectionChange
 }) => {
   const [content, setContent] = useState<string>('');
   const [loading, setLoading] = useState(true);
@@ -33,6 +39,8 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
     const saved = localStorage.getItem('fontSize');
     return (saved as 'small' | 'medium' | 'large') || 'medium';
   });
+  const [showSectionPicker, setShowSectionPicker] = useState(false);
+  const [pendingVerse, setPendingVerse] = useState<string | null>(null);
 
   useEffect(() => {
     loadChapter();
@@ -59,18 +67,18 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
     }
   }, [loading, content]);
 
-  const toggleFavorite = async (verseNumber: string) => {
+  const toggleFavorite = async (verseNumber: string, sectionId?: number | null) => {
     if (!user) return;
 
     const isFavorited = favorites.has(verseNumber);
-    
+
     try {
       if (isFavorited) {
         // Remove favorite
         const response = await fetch('/api/favorites', {
           credentials: 'include'
         });
-        
+
         if (response.ok) {
           const data = await response.json();
           const verseFavorite = data.favorites.find((fav: any) =>
@@ -79,7 +87,7 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
             fav.verse_start === parseInt(verseNumber) &&
             fav.version === version
           );
-          
+
           if (verseFavorite) {
             const deleteResponse = await fetch(`/api/favorites/${verseFavorite.id}`, {
               method: 'DELETE',
@@ -88,33 +96,26 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
 
             if (deleteResponse.ok) {
               console.log('Removed verse favorite:', verseNumber);
-              onFavoriteChange?.(); // Notify parent to refresh favorites
+              onFavoriteChange?.();
             }
           }
         }
       } else {
-        // Add favorite
-        const response = await fetch('/api/favorites', {
-          method: 'POST',
-          headers: {
-            'Content-Type': 'application/json',
-          },
-          credentials: 'include',
-          body: JSON.stringify({
-            book: book,
-            chapter: chapter,
-            verse_start: parseInt(verseNumber),
-            version: version
-          })
-        });
-
-        if (response.ok) {
-          console.log('Added verse favorite:', verseNumber);
-          onFavoriteChange?.(); // Notify parent to refresh favorites
-        } else if (response.status === 409) {
-          // 409 means it already exists, which is fine
-          console.log('Verse favorite already exists:', verseNumber);
-          onFavoriteChange?.(); // Notify parent to refresh favorites
+        // Add favorite - check if we need section picker
+        if (sections.length > 0 && sectionId === undefined) {
+          // User has sections, check for default
+          const defaultSection = sections.find(s => s.is_default);
+          if (defaultSection) {
+            // Use default section automatically
+            await addFavoriteWithSection(verseNumber, defaultSection.id);
+          } else {
+            // Show section picker
+            setPendingVerse(verseNumber);
+            setShowSectionPicker(true);
+          }
+        } else {
+          // No sections or section already specified
+          await addFavoriteWithSection(verseNumber, sectionId ?? null);
         }
       }
     } catch (error) {
@@ -122,6 +123,43 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
     }
   };
 
+  const addFavoriteWithSection = async (verseNumber: string, sectionId: number | null) => {
+    try {
+      const response = await fetch('/api/favorites', {
+        method: 'POST',
+        headers: {
+          'Content-Type': 'application/json',
+        },
+        credentials: 'include',
+        body: JSON.stringify({
+          book: book,
+          chapter: chapter,
+          verse_start: parseInt(verseNumber),
+          version: version,
+          section_id: sectionId
+        })
+      });
+
+      if (response.ok) {
+        console.log('Added verse favorite:', verseNumber, 'to section:', sectionId);
+        onFavoriteChange?.();
+      } else if (response.status === 409) {
+        console.log('Verse favorite already exists:', verseNumber);
+        onFavoriteChange?.();
+      }
+    } catch (error) {
+      console.error('Failed to add favorite:', error);
+    }
+  };
+
+  const handleSectionSelect = async (sectionId: number | null) => {
+    if (pendingVerse) {
+      await addFavoriteWithSection(pendingVerse, sectionId);
+      setPendingVerse(null);
+    }
+    setShowSectionPicker(false);
+  };
+
   const loadChapters = async () => {
     try {
       const response = await fetch(`/books/${book}?version=${version}`);
@@ -400,6 +438,19 @@ const BibleReader: React.FC<BibleReaderProps> = memo(({
           </button>
         )}
       </div>
+
+      {/* Section Picker Modal */}
+      {showSectionPicker && (
+        <SectionPicker
+          sections={sections}
+          onSelect={handleSectionSelect}
+          onCancel={() => {
+            setShowSectionPicker(false);
+            setPendingVerse(null);
+          }}
+          onSectionCreated={onSectionChange}
+        />
+      )}
     </div>
   );
 });
diff --git a/frontend/src/components/BookSelector.tsx b/frontend/src/components/BookSelector.tsx
index aa76c476..17b7ca47 100644
--- a/frontend/src/components/BookSelector.tsx
+++ b/frontend/src/components/BookSelector.tsx
@@ -1,5 +1,7 @@
-import React, { useState, useEffect, memo } from 'react';
-import { BookOpen, Star, ChevronLeft, Search } from 'lucide-react';
+import React, { useState, memo } from 'react';
+import { BookOpen, Star, Search } from 'lucide-react';
+import { Section } from '../types/favorites';
+import SectionPicker from './SectionPicker';
 
 interface BookSelectorProps {
   books: string[];
@@ -10,7 +12,9 @@ interface BookSelectorProps {
   version?: string;
   onBack?: () => void;
   onSearchClick?: () => void;
-  favorites?: Set<string>; // Favorites passed from parent (centralized state)
+  favorites?: Set<string>;
+  sections?: Section[];
+  onSectionChange?: () => void;
 }
 
 const BookSelector: React.FC<BookSelectorProps> = memo(({
@@ -22,27 +26,31 @@ const BookSelector: React.FC<BookSelectorProps> = memo(({
   version = 'esv',
   onBack,
   onSearchClick,
-  favorites = new Set() // Default to empty set if not provided
+  favorites = new Set(),
+  sections = [],
+  onSectionChange
 }) => {
+  const [showSectionPicker, setShowSectionPicker] = useState(false);
+  const [pendingBook, setPendingBook] = useState<string | null>(null);
+
+  const toggleFavorite = async (book: string, event: React.MouseEvent, sectionId?: number | null) => {
+    event.stopPropagation();
 
-  const toggleFavorite = async (book: string, event: React.MouseEvent) => {
-    event.stopPropagation(); // Prevent book selection when clicking star
-    
     if (!user) return;
 
     const isFavorited = favorites.has(book);
-    
+
     try {
       if (isFavorited) {
         // Remove favorite
         const response = await fetch('/api/favorites', {
           credentials: 'include'
         });
-        
+
         if (response.ok) {
           const data = await response.json();
           const bookFavorite = data.favorites.find((fav: any) => fav.book === book && !fav.chapter);
-          
+
           if (bookFavorite) {
             const deleteResponse = await fetch(`/api/favorites/${bookFavorite.id}`, {
               method: 'DELETE',
@@ -51,29 +59,22 @@ const BookSelector: React.FC<BookSelectorProps> = memo(({
 
             if (deleteResponse.ok) {
               console.log('Removed book favorite:', book);
-              onFavoriteChange?.(); // Notify parent to refresh favorites
+              onFavoriteChange?.();
             }
           }
         }
       } else {
-        // Add favorite - simplified like ChapterSelector
-        const response = await fetch('/api/favorites', {
-          method: 'POST',
-          headers: {
-            'Content-Type': 'application/json',
-          },
-          credentials: 'include',
-          body: JSON.stringify({
-            book: book,
-            version: version
-          })
-        });
-
-        if (response.ok) {
-          console.log('Added book favorite:', book);
-          onFavoriteChange?.(); // Notify parent to refresh favorites
+        // Add favorite - check if we need section picker
+        if (sections.length > 0 && sectionId === undefined) {
+          const defaultSection = sections.find(s => s.is_default);
+          if (defaultSection) {
+            await addFavoriteWithSection(book, defaultSection.id);
+          } else {
+            setPendingBook(book);
+            setShowSectionPicker(true);
+          }
         } else {
-          console.error('Failed to add favorite:', response.status, response.statusText);
+          await addFavoriteWithSection(book, sectionId ?? null);
         }
       }
     } catch (error) {
@@ -81,9 +82,43 @@ const BookSelector: React.FC<BookSelectorProps> = memo(({
     }
   };
 
+  const addFavoriteWithSection = async (book: string, sectionId: number | null) => {
+    try {
+      const response = await fetch('/api/favorites', {
+        method: 'POST',
+        headers: {
+          'Content-Type': 'application/json',
+        },
+        credentials: 'include',
+        body: JSON.stringify({
+          book: book,
+          version: version,
+          section_id: sectionId
+        })
+      });
+
+      if (response.ok) {
+        console.log('Added book favorite:', book, 'to section:', sectionId);
+        onFavoriteChange?.();
+      } else {
+        console.error('Failed to add favorite:', response.status, response.statusText);
+      }
+    } catch (error) {
+      console.error('Failed to add favorite:', error);
+    }
+  };
+
+  const handleSectionSelect = async (sectionId: number | null) => {
+    if (pendingBook) {
+      await addFavoriteWithSection(pendingBook, sectionId);
+      setPendingBook(null);
+    }
+    setShowSectionPicker(false);
+  };
+
   // Group books by testament
-  const oldTestament = books.slice(0, 39); // First 39 books
-  const newTestament = books.slice(39); // Remaining books
+  const oldTestament = books.slice(0, 39);
+  const newTestament = books.slice(39);
 
   const BookGroup: React.FC<{ title: string; books: string[] }> = ({ title, books }) => (
     <div className="mb-8">
@@ -102,18 +137,17 @@ const BookSelector: React.FC<BookSelectorProps> = memo(({
                 {formatBookName(book)}
               </span>
             </button>
-            
-            {/* Star button - only show for authenticated users */}
+
             {user && (
               <button
                 onClick={(e) => toggleFavorite(book, e)}
                 className="absolute top-2 right-2 p-1 rounded-full hover:bg-gray-100 dark:hover:bg-gray-700 transition-colors"
                 title={favorites.has(book) ? 'Remove from favorites' : 'Add to favorites'}
               >
-                <Star 
+                <Star
                   className={`h-4 w-4 ${
-                    favorites.has(book) 
-                      ? 'text-yellow-500 fill-yellow-500' 
+                    favorites.has(book)
+                      ? 'text-yellow-500 fill-yellow-500'
                       : 'text-gray-400 hover:text-yellow-500'
                   } transition-colors`}
                 />
@@ -163,13 +197,26 @@ const BookSelector: React.FC<BookSelectorProps> = memo(({
         </p>
         {user && (
           <p className="text-sm text-gray-500 dark:text-gray-400 mt-2">
-            Click the ★ to add books to your favorites
+            Click the star to add books to your favorites
           </p>
         )}
       </div>
 
       <BookGroup title="Old Testament" books={oldTestament} />
       <BookGroup title="New Testament" books={newTestament} />
+
+      {/* Section Picker Modal */}
+      {showSectionPicker && (
+        <SectionPicker
+          sections={sections}
+          onSelect={handleSectionSelect}
+          onCancel={() => {
+            setShowSectionPicker(false);
+            setPendingBook(null);
+          }}
+          onSectionCreated={onSectionChange}
+        />
+      )}
     </div>
   );
 });
diff --git a/frontend/src/components/ChapterSelector.tsx b/frontend/src/components/ChapterSelector.tsx
index b664976a..18d4d57d 100644
--- a/frontend/src/components/ChapterSelector.tsx
+++ b/frontend/src/components/ChapterSelector.tsx
@@ -1,6 +1,8 @@
 import React, { useState, useEffect, memo } from 'react';
 import { ArrowLeft, FileText, Star, ChevronRight, Search } from 'lucide-react';
 import { getBook } from '../services/api';
+import { Section } from '../types/favorites';
+import SectionPicker from './SectionPicker';
 
 interface ChapterSelectorProps {
   book: string;
@@ -11,7 +13,9 @@ interface ChapterSelectorProps {
   onFavoriteChange?: () => void;
   version?: string;
   onSearchClick?: () => void;
-  favorites?: Set<string>; // Favorites passed from parent (centralized state)
+  favorites?: Set<string>;
+  sections?: Section[];
+  onSectionChange?: () => void;
 }
 
 const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
@@ -23,35 +27,39 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
   onFavoriteChange,
   version = 'esv',
   onSearchClick,
-  favorites = new Set() // Default to empty set if not provided
+  favorites = new Set(),
+  sections = [],
+  onSectionChange
 }) => {
   const [chapters, setChapters] = useState<string[]>([]);
   const [loading, setLoading] = useState(true);
+  const [showSectionPicker, setShowSectionPicker] = useState(false);
+  const [pendingChapter, setPendingChapter] = useState<string | null>(null);
 
   useEffect(() => {
     loadChapters();
   }, [book]);
 
-  const toggleFavorite = async (chapter: string, event: React.MouseEvent) => {
-    event.stopPropagation(); // Prevent chapter selection when clicking star
-    
+  const toggleFavorite = async (chapter: string, event: React.MouseEvent, sectionId?: number | null) => {
+    event.stopPropagation();
+
     if (!user) return;
 
     const isFavorited = favorites.has(chapter);
-    
+
     try {
       if (isFavorited) {
         // Remove favorite
         const response = await fetch('/api/favorites', {
           credentials: 'include'
         });
-        
+
         if (response.ok) {
           const data = await response.json();
-          const chapterFavorite = data.favorites.find((fav: any) => 
+          const chapterFavorite = data.favorites.find((fav: any) =>
             fav.book === book && fav.chapter === chapter && !fav.verse_start
           );
-          
+
           if (chapterFavorite) {
             await fetch(`/api/favorites/${chapterFavorite.id}`, {
               method: 'DELETE',
@@ -59,27 +67,21 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
             });
 
             console.log('Removed chapter favorite:', chapter);
-            onFavoriteChange?.(); // Notify parent to refresh favorites
+            onFavoriteChange?.();
           }
         }
       } else {
-        // Add favorite
-        const response = await fetch('/api/favorites', {
-          method: 'POST',
-          headers: {
-            'Content-Type': 'application/json',
-          },
-          credentials: 'include',
-          body: JSON.stringify({
-            book: book,
-            chapter: chapter,
-            version: version
-          })
-        });
-
-        if (response.ok) {
-          console.log('Added chapter favorite:', chapter);
-          onFavoriteChange?.(); // Notify parent to refresh favorites
+        // Add favorite - check if we need section picker
+        if (sections.length > 0 && sectionId === undefined) {
+          const defaultSection = sections.find(s => s.is_default);
+          if (defaultSection) {
+            await addFavoriteWithSection(chapter, defaultSection.id);
+          } else {
+            setPendingChapter(chapter);
+            setShowSectionPicker(true);
+          }
+        } else {
+          await addFavoriteWithSection(chapter, sectionId ?? null);
         }
       }
     } catch (error) {
@@ -87,14 +89,45 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
     }
   };
 
+  const addFavoriteWithSection = async (chapter: string, sectionId: number | null) => {
+    try {
+      const response = await fetch('/api/favorites', {
+        method: 'POST',
+        headers: {
+          'Content-Type': 'application/json',
+        },
+        credentials: 'include',
+        body: JSON.stringify({
+          book: book,
+          chapter: chapter,
+          version: version,
+          section_id: sectionId
+        })
+      });
+
+      if (response.ok) {
+        console.log('Added chapter favorite:', chapter, 'to section:', sectionId);
+        onFavoriteChange?.();
+      }
+    } catch (error) {
+      console.error('Failed to add favorite:', error);
+    }
+  };
+
+  const handleSectionSelect = async (sectionId: number | null) => {
+    if (pendingChapter) {
+      await addFavoriteWithSection(pendingChapter, sectionId);
+      setPendingChapter(null);
+    }
+    setShowSectionPicker(false);
+  };
+
   const loadChapters = async () => {
     try {
       setLoading(true);
       const response = await getBook(book, version);
 
-      // The API now returns { chapters: ["1", "2", "3", ...] }
       if (response.chapters) {
-        // Sort chapters numerically to ensure proper order
         const sortedChapters = response.chapters.sort((a, b) => parseInt(a, 10) - parseInt(b, 10));
         setChapters(sortedChapters);
       } else {
@@ -103,7 +136,6 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
       }
     } catch (error) {
       console.error('Failed to load chapters:', error);
-      // Don't show fallback chapters - just show an empty list
       setChapters([]);
     } finally {
       setLoading(false);
@@ -160,7 +192,7 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
         </p>
         {user && (
           <p className="text-sm text-gray-500 dark:text-gray-400 mt-2">
-            Click the ★ to add chapters to your favorites
+            Click the star to add chapters to your favorites
           </p>
         )}
       </div>
@@ -178,18 +210,17 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
                 {chapter}
               </span>
             </button>
-            
-            {/* Star button - only show for authenticated users */}
+
             {user && (
               <button
                 onClick={(e) => toggleFavorite(chapter, e)}
                 className="absolute top-1 right-1 p-1 rounded-full hover:bg-gray-100 dark:hover:bg-gray-700 transition-colors"
                 title={favorites.has(chapter) ? 'Remove from favorites' : 'Add to favorites'}
               >
-                <Star 
+                <Star
                   className={`h-3 w-3 ${
-                    favorites.has(chapter) 
-                      ? 'text-yellow-500 fill-yellow-500' 
+                    favorites.has(chapter)
+                      ? 'text-yellow-500 fill-yellow-500'
                       : 'text-gray-400 hover:text-yellow-500'
                   } transition-colors`}
                 />
@@ -205,6 +236,19 @@ const ChapterSelector: React.FC<ChapterSelectorProps> = memo(({
           {chapters.length} chapters available
         </p>
       </div>
+
+      {/* Section Picker Modal */}
+      {showSectionPicker && (
+        <SectionPicker
+          sections={sections}
+          onSelect={handleSectionSelect}
+          onCancel={() => {
+            setShowSectionPicker(false);
+            setPendingChapter(null);
+          }}
+          onSectionCreated={onSectionChange}
+        />
+      )}
     </div>
   );
 });
diff --git a/frontend/src/components/FavoritesMenu.tsx b/frontend/src/components/FavoritesMenu.tsx
index fc544c5f..461881b0 100644
--- a/frontend/src/components/FavoritesMenu.tsx
+++ b/frontend/src/components/FavoritesMenu.tsx
@@ -1,17 +1,8 @@
 import React, { useState, useEffect } from 'react';
-import { Star, ChevronDown, ChevronUp, X, Book, FileText, Quote } from 'lucide-react';
+import { Star, ChevronDown, ChevronUp, X, Settings, FolderOpen, ChevronRight } from 'lucide-react';
 import { useNavigate } from 'react-router-dom';
-
-interface Favorite {
-  id: number;
-  book: string;
-  chapter?: string;
-  verse_start?: number;
-  verse_end?: number;
-  version: string;
-  note?: string;
-  created_at: string;
-}
+import { Section, Favorite } from '../types/favorites';
+import SectionsManager from './SectionsManager';
 
 interface FavoritesMenuProps {
   user: any;
@@ -19,12 +10,25 @@ interface FavoritesMenuProps {
   getBookUrlName: (bookName: string) => string;
   onFavoriteChange?: () => void;
   setSelectedVersion?: (version: string) => void;
+  sections: Section[];
+  onSectionChange: () => void;
 }
 
-const FavoritesMenu: React.FC<FavoritesMenuProps> = ({ user, formatBookName, getBookUrlName, onFavoriteChange, setSelectedVersion }) => {
+const FavoritesMenu: React.FC<FavoritesMenuProps> = ({
+  user,
+  formatBookName,
+  getBookUrlName,
+  onFavoriteChange,
+  setSelectedVersion,
+  sections,
+  onSectionChange
+}) => {
   const [isOpen, setIsOpen] = useState(false);
   const [favorites, setFavorites] = useState<Favorite[]>([]);
   const [loading, setLoading] = useState(false);
+  const [showSectionsManager, setShowSectionsManager] = useState(false);
+  const [collapsedSections, setCollapsedSections] = useState<Set<string>>(new Set());
+  const [movingFavorite, setMovingFavorite] = useState<number | null>(null);
   const navigate = useNavigate();
 
   // Load favorites when user is available
@@ -36,13 +40,13 @@ const FavoritesMenu: React.FC<FavoritesMenuProps> = ({ user, formatBookName, get
 
   const loadFavorites = async () => {
     if (!user) return;
-    
+
     setLoading(true);
     try {
       const response = await fetch('/api/favorites', {
         credentials: 'include'
       });
-      
+
       if (response.ok) {
         const data = await response.json();
         setFavorites(data.favorites || []);
@@ -60,29 +64,47 @@ const FavoritesMenu: React.FC<FavoritesMenuProps> = ({ user, formatBookName, get
         method: 'DELETE',
         credentials: 'include'
       });
-      
+
       if (response.ok) {
         setFavorites(favorites.filter(f => f.id !== favoriteId));
-        onFavoriteChange?.(); // Notify parent to refresh other components
+        onFavoriteChange?.();
       }
     } catch (error) {
       console.error('Failed to remove favorite:', error);
     }
   };
 
+  const moveFavoriteToSection = async (favoriteId: number, sectionId: number | null) => {
+    try {
+      const response = await fetch(`/api/favorites/${favoriteId}/section`, {
+        method: 'PUT',
+        headers: { 'Content-Type': 'application/json' },
+        credentials: 'include',
+        body: JSON.stringify({ section_id: sectionId })
+      });
+
+      if (response.ok) {
+        await loadFavorites();
+        onFavoriteChange?.();
+      }
+    } catch (error) {
+      console.error('Failed to move favorite:', error);
+    } finally {
+      setMovingFavorite(null);
+    }
+  };
+
   const navigateToFavorite = (favorite: Favorite) => {
     const urlBookName = getBookUrlName(favorite.book);
-    const versionPath = favorite.version || 'esv'; // Default to ESV if no version
+    const versionPath = favorite.version || 'esv';
 
     if (favorite.chapter) {
-      // Navigate to chapter, with verse hash if it's a verse favorite
       let navUrl = `/version/${versionPath}/book/${urlBookName}/chapter/${favorite.chapter}`;
       if (favorite.verse_start) {
         navUrl += `#verse-${favorite.verse_start}`;
       }
       navigate(navUrl);
     } else {
-      // Navigate to book
       navigate(`/version/${versionPath}/book/${urlBookName}`);
     }
     setIsOpen(false);
@@ -90,7 +112,7 @@ const FavoritesMenu: React.FC<FavoritesMenuProps> = ({ user, formatBookName, get
 
   const getFavoriteDisplayText = (favorite: Favorite) => {
     const bookName = formatBookName(favorite.book);
-    const versionAbbrev = favorite.version.toUpperCase(); // ESV, NKJV, etc.
+    const versionAbbrev = favorite.version.toUpperCase();
 
     let reference = '';
     if (favorite.verse_start && favorite.verse_end) {
@@ -98,7 +120,7 @@ const FavoritesMenu: React.FC<FavoritesMenuProps> = ({ user, formatBookName, get
     } else if (favorite.verse_start) {
       reference = `${bookName} ${favorite.chapter}:${favorite.verse_start}`;
     } else if (favorite.chapter) {
-      reference = `${bookName} Chapter ${favorite.chapter}`;
+      reference = `${bookName} ${favorite.chapter}`;
     } else {
       reference = bookName;
     }
@@ -106,123 +128,262 @@ const FavoritesMenu: React.FC<FavoritesMenuProps> = ({ user, formatBookName, get
     return `${reference} (${versionAbbrev})`;
   };
 
-  // Organize favorites by type
-  const organizedFavorites = {
-    books: favorites.filter(f => !f.chapter),
-    chapters: favorites.filter(f => f.chapter && !f.verse_start),
-    verses: favorites.filter(f => f.verse_start)
+  const toggleSectionCollapse = (sectionKey: string) => {
+    setCollapsedSections(prev => {
+      const next = new Set(prev);
+      if (next.has(sectionKey)) {
+        next.delete(sectionKey);
+      } else {
+        next.add(sectionKey);
+      }
+      return next;
+    });
   };
 
-  const renderFavoriteSection = (title: string, items: Favorite[], icon: React.ReactNode) => {
-    if (items.length === 0) return null;
+  // Group favorites by section
+  const groupedFavorites = () => {
+    const groups: { [key: string]: { section: Section | null; favorites: Favorite[] } } = {};
+
+    // Initialize groups for each section
+    sections.forEach(section => {
+      groups[`section-${section.id}`] = { section, favorites: [] };
+    });
+
+    // Add uncategorized group
+    groups['uncategorized'] = { section: null, favorites: [] };
+
+    // Sort favorites into groups
+    favorites.forEach(fav => {
+      if (fav.section_id) {
+        const key = `section-${fav.section_id}`;
+        if (groups[key]) {
+          groups[key].favorites.push(fav);
+        } else {
+          // Section was deleted, put in uncategorized
+          groups['uncategorized'].favorites.push(fav);
+        }
+      } else {
+        groups['uncategorized'].favorites.push(fav);
+      }
+    });
+
+    // Return as array, sorted by section sort_order
+    return Object.entries(groups)
+      .map(([key, value]) => ({ key, ...value }))
+      .sort((a, b) => {
+        if (a.section === null) return 1; // Uncategorized at end
+        if (b.section === null) return -1;
+        return a.section.sort_order - b.section.sort_order;
+      })
+      .filter(group => group.favorites.length > 0 || group.section !== null);
+  };
+
+  const renderFavorite = (favorite: Favorite) => (
+    <div
+      key={favorite.id}
+      className="flex items-center justify-between px-3 py-2 hover:bg-gray-50 dark:hover:bg-gray-700 group"
+    >
+      <button
+        onClick={() => navigateToFavorite(favorite)}
+        className="flex-1 text-left"
+      >
+        <div className="font-medium text-gray-900 dark:text-gray-100 text-sm">
+          {getFavoriteDisplayText(favorite)}
+        </div>
+        {favorite.note && (
+          <div className="text-xs text-gray-500 dark:text-gray-400 mt-1 truncate">
+            {favorite.note}
+          </div>
+        )}
+      </button>
+      <div className="flex items-center gap-1 opacity-0 group-hover:opacity-100 transition-opacity">
+        {sections.length > 0 && (
+          <div className="relative">
+            <button
+              onClick={() => setMovingFavorite(movingFavorite === favorite.id ? null : favorite.id)}
+              className="p-1 hover:bg-gray-200 dark:hover:bg-gray-600 rounded transition-colors"
+              title="Move to section"
+            >
+              <FolderOpen className="h-4 w-4 text-gray-400 hover:text-blue-500" />
+            </button>
+            {movingFavorite === favorite.id && (
+              <div className="absolute right-0 top-full mt-1 z-10 bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-lg shadow-lg min-w-[150px]">
+                <div className="py-1">
+                  <button
+                    onClick={() => moveFavoriteToSection(favorite.id, null)}
+                    className={`w-full px-3 py-2 text-left text-sm hover:bg-gray-100 dark:hover:bg-gray-700 flex items-center gap-2 ${
+                      !favorite.section_id ? 'bg-blue-50 dark:bg-blue-900/20' : ''
+                    }`}
+                  >
+                    <div className="w-3 h-3 rounded-full bg-gray-300 dark:bg-gray-600" />
+                    Uncategorized
+                  </button>
+                  {sections.map(section => (
+                    <button
+                      key={section.id}
+                      onClick={() => moveFavoriteToSection(favorite.id, section.id)}
+                      className={`w-full px-3 py-2 text-left text-sm hover:bg-gray-100 dark:hover:bg-gray-700 flex items-center gap-2 ${
+                        favorite.section_id === section.id ? 'bg-blue-50 dark:bg-blue-900/20' : ''
+                      }`}
+                    >
+                      <div
+                        className="w-3 h-3 rounded-full"
+                        style={{ backgroundColor: section.color }}
+                      />
+                      {section.name}
+                    </button>
+                  ))}
+                </div>
+              </div>
+            )}
+          </div>
+        )}
+        <button
+          onClick={() => removeFavorite(favorite.id)}
+          className="p-1 hover:bg-red-100 dark:hover:bg-red-900 rounded transition-colors"
+          title="Remove favorite"
+        >
+          <X className="h-4 w-4 text-red-500" />
+        </button>
+      </div>
+    </div>
+  );
+
+  const renderSectionGroup = (group: { key: string; section: Section | null; favorites: Favorite[] }) => {
+    const isCollapsed = collapsedSections.has(group.key);
+    const sectionName = group.section?.name || 'Uncategorized';
+    const sectionColor = group.section?.color || '#6B7280';
 
     return (
-      <div className="mb-2">
-        <div className="flex items-center space-x-2 px-3 py-2 bg-gray-50 dark:bg-gray-700 border-b border-gray-200 dark:border-gray-600">
-          {icon}
-          <span className="text-xs font-medium text-gray-600 dark:text-gray-300 uppercase tracking-wide">
-            {title} ({items.length})
-          </span>
-        </div>
-        {items.map((favorite) => (
+      <div key={group.key} className="mb-1">
+        <button
+          onClick={() => toggleSectionCollapse(group.key)}
+          className="w-full flex items-center gap-2 px-3 py-2 bg-gray-50 dark:bg-gray-700 hover:bg-gray-100 dark:hover:bg-gray-600 transition-colors"
+        >
+          <ChevronRight
+            className={`h-4 w-4 text-gray-400 transition-transform ${
+              !isCollapsed ? 'rotate-90' : ''
+            }`}
+          />
           <div
-            key={favorite.id}
-            className="flex items-center justify-between px-3 py-2 hover:bg-gray-50 dark:hover:bg-gray-700 group"
-          >
-            <button
-              onClick={() => navigateToFavorite(favorite)}
-              className="flex-1 text-left"
-            >
-              <div className="font-medium text-gray-900 dark:text-gray-100 text-sm">
-                {getFavoriteDisplayText(favorite)}
-              </div>
-              {favorite.note && (
-                <div className="text-xs text-gray-500 dark:text-gray-400 mt-1 truncate">
-                  {favorite.note}
-                </div>
-              )}
-            </button>
-            <button
-              onClick={() => removeFavorite(favorite.id)}
-              className="p-2 hover:bg-red-100 dark:hover:bg-red-900 rounded transition-colors"
-              title="Remove favorite"
-            >
-              <X className="h-4 w-4 text-red-500" />
-            </button>
+            className="w-3 h-3 rounded-full"
+            style={{ backgroundColor: sectionColor }}
+          />
+          <span className="text-sm font-medium text-gray-700 dark:text-gray-300 flex-1 text-left">
+            {sectionName}
+          </span>
+          <span className="text-xs text-gray-500 dark:text-gray-400">
+            {group.favorites.length}
+          </span>
+        </button>
+        {!isCollapsed && group.favorites.length > 0 && (
+          <div className="border-l-2 ml-4" style={{ borderColor: sectionColor }}>
+            {group.favorites.map(renderFavorite)}
           </div>
-        ))}
+        )}
       </div>
     );
   };
 
   if (!user) {
-    return null; // Don't show favorites menu for non-authenticated users
+    return null;
   }
 
   return (
-    <div className="relative">
-      {/* Favorites Toggle Button */}
-      <button
-        onClick={() => setIsOpen(!isOpen)}
-        className="flex items-center space-x-1 px-3 py-1 text-sm bg-yellow-100 dark:bg-yellow-900 text-yellow-800 dark:text-yellow-200 rounded hover:bg-yellow-200 dark:hover:bg-yellow-800 transition-colors"
-      >
-        <Star className="h-4 w-4" />
-        <span>Favorites</span>
-        {favorites.length > 0 && (
-          <span className="bg-yellow-600 text-white text-xs rounded-full px-1.5 py-0.5 min-w-[1.25rem] text-center">
-            {favorites.length}
-          </span>
-        )}
-        {isOpen ? <ChevronUp className="h-3 w-3" /> : <ChevronDown className="h-3 w-3" />}
-      </button>
+    <>
+      <div className="relative">
+        {/* Favorites Toggle Button */}
+        <button
+          onClick={() => setIsOpen(!isOpen)}
+          className="flex items-center space-x-1 px-3 py-1 text-sm bg-yellow-100 dark:bg-yellow-900 text-yellow-800 dark:text-yellow-200 rounded hover:bg-yellow-200 dark:hover:bg-yellow-800 transition-colors"
+        >
+          <Star className="h-4 w-4" />
+          <span>Favorites</span>
+          {favorites.length > 0 && (
+            <span className="bg-yellow-600 text-white text-xs rounded-full px-1.5 py-0.5 min-w-[1.25rem] text-center">
+              {favorites.length}
+            </span>
+          )}
+          {isOpen ? <ChevronUp className="h-3 w-3" /> : <ChevronDown className="h-3 w-3" />}
+        </button>
 
-      {/* Favorites Dropdown */}
-      {isOpen && (
-        <div className="absolute top-full right-0 mt-2 w-80 max-w-[calc(100vw-1rem)] bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-lg shadow-lg z-50 max-h-96 overflow-hidden">
-          <div className="p-3 border-b border-gray-200 dark:border-gray-700">
-            <div className="flex items-center justify-between">
-              <h3 className="font-medium text-gray-900 dark:text-gray-100">My Favorites</h3>
-              <button
-                onClick={() => setIsOpen(false)}
-                className="p-1 hover:bg-gray-100 dark:hover:bg-gray-700 rounded"
-              >
-                <X className="h-4 w-4 text-gray-500" />
-              </button>
-            </div>
-          </div>
-          
-          <div className="max-h-80 overflow-y-auto">
-            {loading ? (
-              <div className="p-4 text-center text-gray-500">Loading favorites...</div>
-            ) : favorites.length === 0 ? (
-              <div className="p-4 text-center text-gray-500">
-                <Star className="h-8 w-8 mx-auto mb-2 text-gray-300" />
-                <p>No favorites yet</p>
-                <p className="text-sm">Click the ★ next to books, chapters, or verses to add them here</p>
+        {/* Favorites Dropdown */}
+        {isOpen && (
+          <div className="absolute top-full right-0 mt-2 w-80 max-w-[calc(100vw-1rem)] bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-lg shadow-lg z-50 max-h-[70vh] overflow-hidden">
+            <div className="p-3 border-b border-gray-200 dark:border-gray-700">
+              <div className="flex items-center justify-between">
+                <h3 className="font-medium text-gray-900 dark:text-gray-100">My Favorites</h3>
+                <div className="flex items-center gap-1">
+                  <button
+                    onClick={() => setShowSectionsManager(true)}
+                    className="p-1.5 hover:bg-gray-100 dark:hover:bg-gray-700 rounded text-gray-500 hover:text-gray-700 dark:hover:text-gray-300"
+                    title="Manage sections"
+                  >
+                    <Settings className="h-4 w-4" />
+                  </button>
+                  <button
+                    onClick={() => setIsOpen(false)}
+                    className="p-1 hover:bg-gray-100 dark:hover:bg-gray-700 rounded"
+                  >
+                    <X className="h-4 w-4 text-gray-500" />
+                  </button>
+                </div>
               </div>
-            ) : (
-              <div className="py-1">
-                {renderFavoriteSection(
-                  "Books", 
-                  organizedFavorites.books, 
-                  <Book className="h-3 w-3 text-blue-600 dark:text-blue-400" />
-                )}
-                {renderFavoriteSection(
-                  "Chapters", 
-                  organizedFavorites.chapters, 
-                  <FileText className="h-3 w-3 text-green-600 dark:text-green-400" />
-                )}
-                {renderFavoriteSection(
-                  "Verses", 
-                  organizedFavorites.verses, 
-                  <Quote className="h-3 w-3 text-purple-600 dark:text-purple-400" />
-                )}
+              {sections.length > 0 && (
+                <p className="text-xs text-gray-500 dark:text-gray-400 mt-1">
+                  {sections.length} section{sections.length !== 1 ? 's' : ''}
+                </p>
+              )}
+            </div>
+
+            <div className="max-h-[50vh] overflow-y-auto">
+              {loading ? (
+                <div className="p-4 text-center text-gray-500">Loading favorites...</div>
+              ) : favorites.length === 0 && sections.length === 0 ? (
+                <div className="p-4 text-center text-gray-500">
+                  <Star className="h-8 w-8 mx-auto mb-2 text-gray-300" />
+                  <p>No favorites yet</p>
+                  <p className="text-sm mt-1">Click the star next to books, chapters, or verses to add them here</p>
+                </div>
+              ) : (
+                <div className="py-1">
+                  {groupedFavorites().map(renderSectionGroup)}
+                  {favorites.length === 0 && sections.length > 0 && (
+                    <div className="p-4 text-center text-gray-500">
+                      <p className="text-sm">No favorites yet. Add some by clicking the star icons!</p>
+                    </div>
+                  )}
+                </div>
+              )}
+            </div>
+
+            {/* Quick actions footer */}
+            {sections.length === 0 && favorites.length > 0 && (
+              <div className="p-3 border-t border-gray-200 dark:border-gray-700">
+                <button
+                  onClick={() => setShowSectionsManager(true)}
+                  className="w-full text-sm text-blue-600 dark:text-blue-400 hover:underline"
+                >
+                  Create sections to organize your favorites
+                </button>
               </div>
             )}
           </div>
-        </div>
+        )}
+      </div>
+
+      {/* Sections Manager Modal */}
+      {showSectionsManager && (
+        <SectionsManager
+          sections={sections}
+          onClose={() => setShowSectionsManager(false)}
+          onSectionChange={() => {
+            onSectionChange();
+            loadFavorites();
+          }}
+        />
       )}
-    </div>
+    </>
   );
 };
 
diff --git a/frontend/src/components/SectionPicker.tsx b/frontend/src/components/SectionPicker.tsx
new file mode 100644
index 00000000..2d5f0feb
--- /dev/null
+++ b/frontend/src/components/SectionPicker.tsx
@@ -0,0 +1,209 @@
+import React, { useState } from 'react';
+import { X, Plus, FolderOpen } from 'lucide-react';
+import { Section, SECTION_COLORS } from '../types/favorites';
+
+interface SectionPickerProps {
+  sections: Section[];
+  onSelect: (sectionId: number | null) => void;
+  onCancel: () => void;
+  onSectionCreated?: () => void;
+}
+
+const SectionPicker: React.FC<SectionPickerProps> = ({
+  sections,
+  onSelect,
+  onCancel,
+  onSectionCreated
+}) => {
+  const [selectedSection, setSelectedSection] = useState<number | null>(() => {
+    // Default to the user's default section if one exists
+    const defaultSection = sections.find(s => s.is_default);
+    return defaultSection ? defaultSection.id : null;
+  });
+  const [showNewForm, setShowNewForm] = useState(false);
+  const [newSectionName, setNewSectionName] = useState('');
+  const [newSectionColor, setNewSectionColor] = useState('#3B82F6');
+  const [error, setError] = useState('');
+  const [creating, setCreating] = useState(false);
+
+  const createAndSelect = async () => {
+    if (!newSectionName.trim()) {
+      setError('Section name is required');
+      return;
+    }
+
+    setCreating(true);
+    try {
+      const response = await fetch('/api/sections', {
+        method: 'POST',
+        headers: { 'Content-Type': 'application/json' },
+        credentials: 'include',
+        body: JSON.stringify({ name: newSectionName.trim(), color: newSectionColor })
+      });
+
+      if (response.ok) {
+        const data = await response.json();
+        onSectionCreated?.();
+        // Select the newly created section
+        onSelect(data.section.id);
+      } else {
+        const data = await response.json();
+        setError(data.error || 'Failed to create section');
+        setCreating(false);
+      }
+    } catch (err) {
+      setError('Failed to create section');
+      setCreating(false);
+    }
+  };
+
+  return (
+    <div className="fixed inset-0 bg-black bg-opacity-50 flex items-center justify-center z-50 p-4">
+      <div className="bg-white dark:bg-gray-800 rounded-lg shadow-xl max-w-sm w-full">
+        {/* Header */}
+        <div className="flex items-center justify-between p-4 border-b border-gray-200 dark:border-gray-700">
+          <div className="flex items-center gap-2">
+            <FolderOpen className="h-5 w-5 text-blue-500" />
+            <h3 className="font-medium text-gray-900 dark:text-gray-100">Add to Section</h3>
+          </div>
+          <button
+            onClick={onCancel}
+            className="p-1 hover:bg-gray-100 dark:hover:bg-gray-700 rounded"
+          >
+            <X className="h-5 w-5 text-gray-500" />
+          </button>
+        </div>
+
+        {/* Section options */}
+        <div className="p-4 space-y-2 max-h-64 overflow-y-auto">
+          {/* Uncategorized option */}
+          <label className="flex items-center gap-3 p-2 rounded-lg hover:bg-gray-50 dark:hover:bg-gray-700 cursor-pointer">
+            <input
+              type="radio"
+              name="section"
+              checked={selectedSection === null}
+              onChange={() => setSelectedSection(null)}
+              className="w-4 h-4 text-blue-600"
+            />
+            <div className="w-4 h-4 rounded-full bg-gray-300 dark:bg-gray-600" />
+            <span className="text-sm text-gray-700 dark:text-gray-300">Uncategorized</span>
+          </label>
+
+          {/* User sections */}
+          {sections.map(section => (
+            <label
+              key={section.id}
+              className="flex items-center gap-3 p-2 rounded-lg hover:bg-gray-50 dark:hover:bg-gray-700 cursor-pointer"
+            >
+              <input
+                type="radio"
+                name="section"
+                checked={selectedSection === section.id}
+                onChange={() => setSelectedSection(section.id)}
+                className="w-4 h-4 text-blue-600"
+              />
+              <div
+                className="w-4 h-4 rounded-full"
+                style={{ backgroundColor: section.color }}
+              />
+              <span className="text-sm text-gray-700 dark:text-gray-300 flex-1">
+                {section.name}
+              </span>
+              {section.is_default && (
+                <span className="text-xs bg-yellow-100 dark:bg-yellow-900 text-yellow-700 dark:text-yellow-300 px-1.5 py-0.5 rounded">
+                  default
+                </span>
+              )}
+            </label>
+          ))}
+        </div>
+
+        {/* Create new section */}
+        <div className="px-4 pb-4">
+          {showNewForm ? (
+            <div className="space-y-2">
+              {error && (
+                <p className="text-xs text-red-600 dark:text-red-400">{error}</p>
+              )}
+              <div className="flex items-center gap-2">
+                <select
+                  value={newSectionColor}
+                  onChange={(e) => setNewSectionColor(e.target.value)}
+                  className="w-10 h-8 p-0 border border-gray-300 dark:border-gray-600 rounded cursor-pointer"
+                  style={{ backgroundColor: newSectionColor }}
+                >
+                  {SECTION_COLORS.map(color => (
+                    <option key={color.value} value={color.value} style={{ backgroundColor: color.value }}>
+                      {color.name}
+                    </option>
+                  ))}
+                </select>
+                <input
+                  type="text"
+                  value={newSectionName}
+                  onChange={(e) => setNewSectionName(e.target.value)}
+                  placeholder="New section name..."
+                  className="flex-1 px-2 py-1 text-sm bg-white dark:bg-gray-700 border border-gray-300 dark:border-gray-600 rounded text-gray-900 dark:text-gray-100"
+                  autoFocus
+                  onKeyDown={(e) => {
+                    if (e.key === 'Enter' && !creating) createAndSelect();
+                    if (e.key === 'Escape') {
+                      setShowNewForm(false);
+                      setNewSectionName('');
+                      setError('');
+                    }
+                  }}
+                />
+              </div>
+              <div className="flex justify-end gap-2">
+                <button
+                  onClick={() => {
+                    setShowNewForm(false);
+                    setNewSectionName('');
+                    setError('');
+                  }}
+                  className="px-3 py-1 text-sm text-gray-600 dark:text-gray-400 hover:bg-gray-100 dark:hover:bg-gray-700 rounded"
+                >
+                  Cancel
+                </button>
+                <button
+                  onClick={createAndSelect}
+                  disabled={creating}
+                  className="px-3 py-1 text-sm bg-blue-600 text-white rounded hover:bg-blue-700 disabled:opacity-50"
+                >
+                  {creating ? 'Creating...' : 'Create & Add'}
+                </button>
+              </div>
+            </div>
+          ) : (
+            <button
+              onClick={() => setShowNewForm(true)}
+              className="flex items-center gap-2 w-full px-3 py-2 text-sm text-gray-600 dark:text-gray-400 hover:bg-gray-50 dark:hover:bg-gray-700 rounded-lg"
+            >
+              <Plus className="h-4 w-4" />
+              <span>Create new section</span>
+            </button>
+          )}
+        </div>
+
+        {/* Actions */}
+        <div className="flex justify-end gap-2 p-4 border-t border-gray-200 dark:border-gray-700">
+          <button
+            onClick={onCancel}
+            className="px-4 py-2 text-sm text-gray-600 dark:text-gray-400 hover:bg-gray-100 dark:hover:bg-gray-700 rounded-lg"
+          >
+            Cancel
+          </button>
+          <button
+            onClick={() => onSelect(selectedSection)}
+            className="px-4 py-2 text-sm bg-blue-600 text-white rounded-lg hover:bg-blue-700"
+          >
+            Add Favorite
+          </button>
+        </div>
+      </div>
+    </div>
+  );
+};
+
+export default SectionPicker;
diff --git a/frontend/src/components/SectionsManager.tsx b/frontend/src/components/SectionsManager.tsx
new file mode 100644
index 00000000..50bc3569
--- /dev/null
+++ b/frontend/src/components/SectionsManager.tsx
@@ -0,0 +1,379 @@
+import React, { useState } from 'react';
+import { X, Plus, Pencil, Trash2, Check, ChevronUp, ChevronDown, Star } from 'lucide-react';
+import { Section, SECTION_COLORS } from '../types/favorites';
+
+interface SectionsManagerProps {
+  sections: Section[];
+  onClose: () => void;
+  onSectionChange: () => void;
+}
+
+const SectionsManager: React.FC<SectionsManagerProps> = ({
+  sections,
+  onClose,
+  onSectionChange
+}) => {
+  const [editingId, setEditingId] = useState<number | null>(null);
+  const [editName, setEditName] = useState('');
+  const [editColor, setEditColor] = useState('');
+  const [newSectionName, setNewSectionName] = useState('');
+  const [newSectionColor, setNewSectionColor] = useState('#3B82F6');
+  const [showNewForm, setShowNewForm] = useState(false);
+  const [showColorPicker, setShowColorPicker] = useState<number | 'new' | null>(null);
+  const [error, setError] = useState('');
+
+  const createSection = async () => {
+    if (!newSectionName.trim()) {
+      setError('Section name is required');
+      return;
+    }
+
+    try {
+      const response = await fetch('/api/sections', {
+        method: 'POST',
+        headers: { 'Content-Type': 'application/json' },
+        credentials: 'include',
+        body: JSON.stringify({ name: newSectionName.trim(), color: newSectionColor })
+      });
+
+      if (response.ok) {
+        setNewSectionName('');
+        setNewSectionColor('#3B82F6');
+        setShowNewForm(false);
+        setError('');
+        onSectionChange();
+      } else {
+        const data = await response.json();
+        setError(data.error || 'Failed to create section');
+      }
+    } catch (err) {
+      setError('Failed to create section');
+    }
+  };
+
+  const updateSection = async (id: number) => {
+    if (!editName.trim()) {
+      setError('Section name is required');
+      return;
+    }
+
+    try {
+      const response = await fetch(`/api/sections/${id}`, {
+        method: 'PUT',
+        headers: { 'Content-Type': 'application/json' },
+        credentials: 'include',
+        body: JSON.stringify({ name: editName.trim(), color: editColor })
+      });
+
+      if (response.ok) {
+        setEditingId(null);
+        setError('');
+        onSectionChange();
+      } else {
+        const data = await response.json();
+        setError(data.error || 'Failed to update section');
+      }
+    } catch (err) {
+      setError('Failed to update section');
+    }
+  };
+
+  const deleteSection = async (id: number) => {
+    if (!confirm('Delete this section? Favorites in this section will be moved to Uncategorized.')) {
+      return;
+    }
+
+    try {
+      const response = await fetch(`/api/sections/${id}`, {
+        method: 'DELETE',
+        credentials: 'include'
+      });
+
+      if (response.ok) {
+        onSectionChange();
+      }
+    } catch (err) {
+      setError('Failed to delete section');
+    }
+  };
+
+  const setDefaultSection = async (id: number) => {
+    try {
+      const response = await fetch(`/api/sections/${id}`, {
+        method: 'PUT',
+        headers: { 'Content-Type': 'application/json' },
+        credentials: 'include',
+        body: JSON.stringify({ is_default: true })
+      });
+
+      if (response.ok) {
+        onSectionChange();
+      }
+    } catch (err) {
+      setError('Failed to set default section');
+    }
+  };
+
+  const moveSection = async (id: number, direction: 'up' | 'down') => {
+    const currentIndex = sections.findIndex(s => s.id === id);
+    if (
+      (direction === 'up' && currentIndex === 0) ||
+      (direction === 'down' && currentIndex === sections.length - 1)
+    ) {
+      return;
+    }
+
+    const newSections = [...sections];
+    const swapIndex = direction === 'up' ? currentIndex - 1 : currentIndex + 1;
+    [newSections[currentIndex], newSections[swapIndex]] = [newSections[swapIndex], newSections[currentIndex]];
+
+    const sectionIds = newSections.map(s => s.id);
+
+    try {
+      const response = await fetch('/api/sections/reorder', {
+        method: 'PUT',
+        headers: { 'Content-Type': 'application/json' },
+        credentials: 'include',
+        body: JSON.stringify({ sectionIds })
+      });
+
+      if (response.ok) {
+        onSectionChange();
+      }
+    } catch (err) {
+      setError('Failed to reorder sections');
+    }
+  };
+
+  const startEditing = (section: Section) => {
+    setEditingId(section.id);
+    setEditName(section.name);
+    setEditColor(section.color);
+    setShowColorPicker(null);
+  };
+
+  const ColorPicker = ({ selectedColor, onSelect, target }: { selectedColor: string; onSelect: (color: string) => void; target: number | 'new' }) => (
+    <div className="absolute z-10 mt-1 p-2 bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-lg shadow-lg">
+      <div className="grid grid-cols-6 gap-1">
+        {SECTION_COLORS.map(color => (
+          <button
+            key={color.value}
+            onClick={() => {
+              onSelect(color.value);
+              setShowColorPicker(null);
+            }}
+            className={`w-6 h-6 rounded-full border-2 ${
+              selectedColor === color.value ? 'border-gray-900 dark:border-white' : 'border-transparent'
+            }`}
+            style={{ backgroundColor: color.value }}
+            title={color.name}
+          />
+        ))}
+      </div>
+    </div>
+  );
+
+  return (
+    <div className="fixed inset-0 bg-black bg-opacity-50 flex items-center justify-center z-50 p-4">
+      <div className="bg-white dark:bg-gray-800 rounded-lg shadow-xl max-w-md w-full max-h-[80vh] overflow-hidden">
+        {/* Header */}
+        <div className="flex items-center justify-between p-4 border-b border-gray-200 dark:border-gray-700">
+          <h2 className="text-lg font-semibold text-gray-900 dark:text-gray-100">Manage Sections</h2>
+          <button
+            onClick={onClose}
+            className="p-1 hover:bg-gray-100 dark:hover:bg-gray-700 rounded"
+          >
+            <X className="h-5 w-5 text-gray-500" />
+          </button>
+        </div>
+
+        {/* Error message */}
+        {error && (
+          <div className="mx-4 mt-4 p-2 bg-red-100 dark:bg-red-900 text-red-700 dark:text-red-200 text-sm rounded">
+            {error}
+          </div>
+        )}
+
+        {/* Sections list */}
+        <div className="p-4 overflow-y-auto max-h-[50vh]">
+          {sections.length === 0 ? (
+            <p className="text-center text-gray-500 dark:text-gray-400 py-4">
+              No sections yet. Create one to organize your favorites!
+            </p>
+          ) : (
+            <div className="space-y-2">
+              {sections.map((section, index) => (
+                <div
+                  key={section.id}
+                  className="flex items-center gap-2 p-2 bg-gray-50 dark:bg-gray-700 rounded-lg"
+                >
+                  {editingId === section.id ? (
+                    // Edit mode
+                    <>
+                      <div className="relative">
+                        <button
+                          onClick={() => setShowColorPicker(showColorPicker === section.id ? null : section.id)}
+                          className="w-6 h-6 rounded-full border-2 border-gray-300"
+                          style={{ backgroundColor: editColor }}
+                        />
+                        {showColorPicker === section.id && (
+                          <ColorPicker
+                            selectedColor={editColor}
+                            onSelect={setEditColor}
+                            target={section.id}
+                          />
+                        )}
+                      </div>
+                      <input
+                        type="text"
+                        value={editName}
+                        onChange={(e) => setEditName(e.target.value)}
+                        className="flex-1 px-2 py-1 text-sm bg-white dark:bg-gray-600 border border-gray-300 dark:border-gray-500 rounded"
+                        autoFocus
+                        onKeyDown={(e) => {
+                          if (e.key === 'Enter') updateSection(section.id);
+                          if (e.key === 'Escape') setEditingId(null);
+                        }}
+                      />
+                      <button
+                        onClick={() => updateSection(section.id)}
+                        className="p-1 text-green-600 hover:bg-green-100 dark:hover:bg-green-900 rounded"
+                      >
+                        <Check className="h-4 w-4" />
+                      </button>
+                      <button
+                        onClick={() => setEditingId(null)}
+                        className="p-1 text-gray-500 hover:bg-gray-200 dark:hover:bg-gray-600 rounded"
+                      >
+                        <X className="h-4 w-4" />
+                      </button>
+                    </>
+                  ) : (
+                    // Display mode
+                    <>
+                      <div
+                        className="w-4 h-4 rounded-full flex-shrink-0"
+                        style={{ backgroundColor: section.color }}
+                      />
+                      <span className="flex-1 text-sm text-gray-900 dark:text-gray-100">
+                        {section.name}
+                      </span>
+                      {section.is_default && (
+                        <span className="text-xs bg-yellow-100 dark:bg-yellow-900 text-yellow-700 dark:text-yellow-300 px-2 py-0.5 rounded">
+                          default
+                        </span>
+                      )}
+                      <div className="flex items-center gap-1">
+                        <button
+                          onClick={() => moveSection(section.id, 'up')}
+                          disabled={index === 0}
+                          className="p-1 text-gray-400 hover:text-gray-600 dark:hover:text-gray-300 disabled:opacity-30"
+                          title="Move up"
+                        >
+                          <ChevronUp className="h-4 w-4" />
+                        </button>
+                        <button
+                          onClick={() => moveSection(section.id, 'down')}
+                          disabled={index === sections.length - 1}
+                          className="p-1 text-gray-400 hover:text-gray-600 dark:hover:text-gray-300 disabled:opacity-30"
+                          title="Move down"
+                        >
+                          <ChevronDown className="h-4 w-4" />
+                        </button>
+                        {!section.is_default && (
+                          <button
+                            onClick={() => setDefaultSection(section.id)}
+                            className="p-1 text-gray-400 hover:text-yellow-500"
+                            title="Set as default"
+                          >
+                            <Star className="h-4 w-4" />
+                          </button>
+                        )}
+                        <button
+                          onClick={() => startEditing(section)}
+                          className="p-1 text-gray-400 hover:text-blue-500"
+                          title="Edit"
+                        >
+                          <Pencil className="h-4 w-4" />
+                        </button>
+                        <button
+                          onClick={() => deleteSection(section.id)}
+                          className="p-1 text-gray-400 hover:text-red-500"
+                          title="Delete"
+                        >
+                          <Trash2 className="h-4 w-4" />
+                        </button>
+                      </div>
+                    </>
+                  )}
+                </div>
+              ))}
+            </div>
+          )}
+        </div>
+
+        {/* Add new section */}
+        <div className="p-4 border-t border-gray-200 dark:border-gray-700">
+          {showNewForm ? (
+            <div className="flex items-center gap-2">
+              <div className="relative">
+                <button
+                  onClick={() => setShowColorPicker(showColorPicker === 'new' ? null : 'new')}
+                  className="w-6 h-6 rounded-full border-2 border-gray-300"
+                  style={{ backgroundColor: newSectionColor }}
+                />
+                {showColorPicker === 'new' && (
+                  <ColorPicker
+                    selectedColor={newSectionColor}
+                    onSelect={setNewSectionColor}
+                    target="new"
+                  />
+                )}
+              </div>
+              <input
+                type="text"
+                value={newSectionName}
+                onChange={(e) => setNewSectionName(e.target.value)}
+                placeholder="Section name..."
+                className="flex-1 px-2 py-1 text-sm bg-white dark:bg-gray-700 border border-gray-300 dark:border-gray-600 rounded text-gray-900 dark:text-gray-100"
+                autoFocus
+                onKeyDown={(e) => {
+                  if (e.key === 'Enter') createSection();
+                  if (e.key === 'Escape') {
+                    setShowNewForm(false);
+                    setNewSectionName('');
+                  }
+                }}
+              />
+              <button
+                onClick={createSection}
+                className="p-1 text-green-600 hover:bg-green-100 dark:hover:bg-green-900 rounded"
+              >
+                <Check className="h-4 w-4" />
+              </button>
+              <button
+                onClick={() => {
+                  setShowNewForm(false);
+                  setNewSectionName('');
+                }}
+                className="p-1 text-gray-500 hover:bg-gray-200 dark:hover:bg-gray-600 rounded"
+              >
+                <X className="h-4 w-4" />
+              </button>
+            </div>
+          ) : (
+            <button
+              onClick={() => setShowNewForm(true)}
+              className="flex items-center gap-2 w-full px-3 py-2 text-sm text-blue-600 dark:text-blue-400 hover:bg-blue-50 dark:hover:bg-blue-900/20 rounded-lg transition-colors"
+            >
+              <Plus className="h-4 w-4" />
+              <span>Add Section</span>
+            </button>
+          )}
+        </div>
+      </div>
+    </div>
+  );
+};
+
+export default SectionsManager;
diff --git a/frontend/src/types/favorites.ts b/frontend/src/types/favorites.ts
new file mode 100644
index 00000000..7d58595f
--- /dev/null
+++ b/frontend/src/types/favorites.ts
@@ -0,0 +1,44 @@
+export interface Section {
+  id: number;
+  name: string;
+  color: string;
+  sort_order: number;
+  is_default: boolean;
+  created_at: string;
+}
+
+export interface Favorite {
+  id: number;
+  book: string;
+  chapter?: string;
+  verse_start?: number;
+  verse_end?: number;
+  version: string;
+  note?: string;
+  section_id?: number;
+  section_name?: string;
+  section_color?: string;
+  created_at: string;
+}
+
+// Color palette for sections
+export const SECTION_COLORS = [
+  { name: 'Gray', value: '#6B7280' },
+  { name: 'Red', value: '#EF4444' },
+  { name: 'Orange', value: '#F97316' },
+  { name: 'Amber', value: '#F59E0B' },
+  { name: 'Yellow', value: '#EAB308' },
+  { name: 'Lime', value: '#84CC16' },
+  { name: 'Green', value: '#22C55E' },
+  { name: 'Emerald', value: '#10B981' },
+  { name: 'Teal', value: '#14B8A6' },
+  { name: 'Cyan', value: '#06B6D4' },
+  { name: 'Sky', value: '#0EA5E9' },
+  { name: 'Blue', value: '#3B82F6' },
+  { name: 'Indigo', value: '#6366F1' },
+  { name: 'Violet', value: '#8B5CF6' },
+  { name: 'Purple', value: '#A855F7' },
+  { name: 'Fuchsia', value: '#D946EF' },
+  { name: 'Pink', value: '#EC4899' },
+  { name: 'Rose', value: '#F43F5E' },
+];